Consumer lending bumps up EastWest Q1 earnings
MANILA, Philippines — Gotianun-led EastWest Bank saw its earnings in the first quarter of this year rise by 6 percent to P1.7 billion, driven by consumer lending expansion and the bank’s digital initiatives.
In a stock exchange filing on Tuesday, EastWest said net interest income surged by 34 percent to P8.2 billion, with consumer lending accounting for 81 percent of total loans.
Net revenues, meanwhile, jumped 28 percent to P10 billion.
Noninterest income expanded by 9 percent to P1.8 billion on steady banking transaction growth.
“Our robust start of the year is a clear indicator of the strategic direction we’ve set—to be one of the top consumer banks in the country,” EastWest president Jacqueline Fernandez said.
READ: EastWest Bank profit hits P6.1B in 2023
The bank’s first-quarter performance resulted in a return on equity of 10 percent, up by 52 basis points.
Total assets grew by a fifth to P480.4 billion, while total loans and receivables climbed by 19 percent to P306.1 billion on higher consumer loans such as credit cards, auto, personal, and salary loans.
On the other hand, operating expenses also jumped by 22 percent to P5.8 billion due to manpower- and business-related expenses. The bank said these were meant “to expand the bank’s balance sheet as well as investments in technology to allow for a more efficient delivery of services.”
READ: EastWest cues launch of new digital offerings
EastWest CEO Jerry Ngo earlier said they would launch new digital products in the coming months to boost the bank’s presence in the booming online market.
According to Ngo, they will need “a few billion pesos” to enhance Komo, EastWest’s digital banking arm. INQ
